Listed Company's Financial Risk

In the market economy, the financial risks are an objective existence that the enterprise needs to be faced with all the time. In the domestic, after china's reform and opening to the outside world, with the gradually establishment of socialist market economy, especially after our country's entry to the WTO, the domestic business will lose the economic structure and monopoly which can help it avoid the risks. At the same time, the environment of law.tax and risk before the enterprise already has deeply changed. All these have made the operation of the business full of market risks.Listed companies are outstanding examples of Chinese enterprises, although none of them has gone into bankruptcy, yet 123 of listed companies have been special treated in Shanghai and Shenzhen market, and 14 have been delisited up to December, 31 in 2003, So, the whole situation of listed companies is not allowed to be optimistic, obviously, it is urgent to research the financial risks in the hope for controlling and reducing it.The article is written just to meet the practical need. Referring to the domestic and international reference, it has made the research on the financial risks of the enterprise. In the context and structure, the article includes five parts.The first chapter briefly summarizes some basic problems, such as risk, financial risk, presents my opinions about them, analyzes the present situation and the defect of research, thus establishes the groundwork for the after discussing.The second chapter introduces the reason of the listed companies financial risk, analyzes the peculiarities of Chinese listed companies.The third chapter explains the methods of discerning financial risk and early-warning of financial risk.The fourth chapter is about empirical study of listed companies in Shandong province.The fifth chapter inquires into prevention and control of the financial risk fromsorts of aspects.In this article, my creative work include: By making use of Altaian's Z-scores model, I calculate Z scores of listed companies in Shandong province according to data of yearly statements in 2002 and 2003; analyze the reasons of financial risks and discuss how to prevent and control financial risks.